Broadstone Net Lease 8K Announces Fourth Quarter and Full Year 2021 Results | BNL 22 Feb 22

Exhibit 99.2

Q4 2021 QUARTERLY SUPPLEMENTAL INFORMATION Broadstone Net Lease, Inc. (NYSE: BNL) is a Real Estate Investment Trust (REIT) that acquires, owns, and manages single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. www.broadstone.com

Table of Contents


Section	Page
About the Data	3
Company Overview	4
Yearly Financial Summary	5-6
Quarterly Financial Summary	7
Balance Sheet	8
Income Statement Summary	9
Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO)	10
EBITDA, EBITDAre, and Other Non-GAAP Operating Measures	11
Lease Revenues Detail	12
Capital Structure	13
Equity Rollforward	14
Debt Outstanding	15
Net Debt Metrics	16
Covenants	16
Debt Maturities	17
Acquisitions	18
Dispositions	19
Portfolio at a Glance: Key Metrics	20
Diversification: Tenants and Brands	21-22
Diversification: Property Type	23-24
Key Statistics by Property Type	25
Diversification: Tenant Industry	26
Diversification: Geography	27
Lease Expirations	28
Portfolio Occupancy	29
Definitions and Explanations	30-31

About the Data

This data and other information described herein are as of and for the three months ended December 31, 2021 unless otherwise indicated. Future performance may not be consistent with past performance and is subject to change and inherent risks and uncertainties. This information should be read in conjunction with Broadstone Net Lease, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2021, including the financial statements and the management's discussion and analysis of financial condition and results of operations sections.

Forward Looking Statements

Information set forth herein contains forward-looking statements, which reflect our current views regarding our business, financial performance, growth prospects and strategies, market opportunities, and market trends. Forward-looking statements include all statements that are not historical facts. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of these words or other comparable words. All of the forward-looking statements herein are subject to various risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions, and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results, performance, and achievements could differ materially from those expressed in or by the forward-looking statements and may be affected by a variety of risks and other factors. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from such forward-looking statements. These factors include, but are not limited to, risks and uncertainties related to the COVID-19 pandemic and its related impacts on us and our tenants, general economic conditions, including but not limited to increases in the rate of inflation and/or interest rates, local real estate conditions, tenant financial health, and property acquisitions and the timing of these acquisitions. These and other risks, assumptions, and uncertainties are described in our filings with the SEC, which are available on the SEC’s website at www.sec.gov.

You are cautioned not to place undue reliance on any forward-looking statements included herein. All forward-looking statements are made as of the date of this document and the risk that actual results, performance, and achievements will differ materially from the expectations expressed or referenced herein will increase with the passage of time. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law.

Company Overview

Broadstone Net Lease, Inc. (NYSE:BNL) (the “Company,” “BNL,” “us,” “our” and “we”) is a real estate investment trust ("REIT") that acquires, owns, and manages primarily single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. Since our inception, we have selectively invested in real estate across the industrial, healthcare, restaurant, retail, and office property types. We target properties with credit worthy tenants in industries characterized by positive business drivers and trends, where the properties are an integral part of the tenants’ businesses and there are opportunities to secure long-term net leases. Through long-term net leases, our tenants are able to retain operational control of their strategically important locations, while allocating their debt and equity capital to fund core business operations rather than real estate ownership.

Executive Team

Christopher J. Czarnecki

Chief Executive Officer, President, and Director

Ryan M. Albano

Executive Vice President and Chief Financial Officer

John D. Moragne

Executive Vice President and Chief Operating Officer

John D. Callan, Jr.

Senior Vice President, General Counsel, and Secretary

Michael B. Caruso

Senior Vice President, Corporate Finance & Investor Relations

Timothy D. Dieffenbacher

Senior Vice President, Chief Accounting Officer, and Treasurer

Kristen Duckles

Senior Vice President, Chief Administrative Officer

Kevin M. Fennell

Senior Vice President, Capital Markets & Credit Risk

Laurier James Lessard, Jr.

Senior Vice President, Asset Management

Roderick A. Pickney

Senior Vice President, Acquisitions

Molly Kelly Wiegel

Senior Vice President, Human Resources

Andrea T. Wright

Senior Vice President, Property Management

Board of Directors

Laurie A. Hawkes

Chairman of the Board

Christopher J. Czarnecki

Chief Executive Officer and President

Denise Brooks-Williams

Michael A. Coke

David M. Jacobstein

Agha S. Khan

Shekar Narasimhan

Geoffrey H. Rosenberger

James H. Waters

Company Contact Information

Michael Caruso
SVP, Corporate Finance & Investor Relations

michael.caruso@broadstone.com

585-402-7842

Transfer Agent

Computershare Trust Company, N.A.

150 Royall Street

Canton, Massachusetts 02021

800-736-3001

Yearly Financial Summary

(unaudited, dollars in thousands, except per share data)


	For the Year Ended December 31,
(in thousands, except per share data)	2021			2020			2019			2018			2017
Operating Data
Revenues
Lease revenues, net	$	382,876		$	321,637		$	298,815		$	237,479		$	181,563
Operating expenses
Depreciation and amortization		132,096			132,685			108,818			83,994			62,263
Property and operating expense		18,459			17,478			15,990			11,157			6,505
General and administrative		36,366			27,988			5,456			6,162			4,939
Provision for impairment of investment in rental properties		28,208			19,077			3,452			2,061			2,608
Asset management fees		—			2,461			21,863			18,173			14,754
Property management fees		—			1,275			8,256			6,529			4,988
Total operating expenses		215,129			200,964			163,835			128,076			96,057
Other income (expenses)
Preferred distribution income		—			—			—			440			737
Interest income		17			24			9			179			467
Interest expense		(64,146	)		(76,138	)		(72,534	)		(52,855	)		(34,751	)
Cost of debt extinguishment		(368	)		(417	)		(1,176	)		(101	)		(5,151	)
Gain on sale of real estate		13,523			14,985			29,914			10,496			12,992
Income taxes		(1,644	)		(939	)		(2,415	)		(857	)		(624	)
Gain on sale of investment in related party		—			—			—			8,500			—
Internalization expenses		—			(3,705	)		(3,658	)		—			—
Change in fair value of earnout liability		(5,539	)		1,800			—			—			—
Other (expenses) income		(62	)		(7	)		(6	)		(100	)		379
Net income		109,528			56,276			85,114			75,105			59,555
Net income attributable to non-controlling interests		(7,102	)		(5,095	)		(5,720	)		(5,730	)		(4,756	)
Net income attributable to Broadstone Net Lease, Inc.	$	102,426		$	51,181		$	79,394		$	69,375		$	54,799
Net Earnings per common share, basic and diluted	$	0.67		$	0.44		$	0.83		$	0.86		$	0.80

Yearly Financial Summary (continued)

(unaudited, dollars in thousands, except per share data)


	December 31,
(In thousands)	2021		2020		2019		2018		2017
Balance Sheet Data
Investment in rental property, at cost	$	4,234,544	$	3,734,121	$	3,728,334	$	2,890,735	$	2,376,141
Investment in rental property, net		3,804,403		3,384,144		3,457,290		2,683,746		2,227,758
Cash and cash equivalents		21,669		100,486		12,455		18,612		9,355
Total assets		4,618,648		4,258,483		3,917,858		3,096,797		2,578,756
Unsecured revolving credit facility		102,000		—		197,300		141,100		273,000
Mortgage and notes payable, net		96,846		107,382		111,793		78,952		67,832
Unsecured term loans, net		646,671		961,330		1,199,957		753,991		688,134
Senior unsecured notes, net		843,801		472,466		472,124		471,782		148,778
Total liabilities		1,877,510		1,779,402		2,138,838		1,567,877		1,294,555
Total Broadstone Net Lease, Inc. stockholders’ equity		2,577,292		2,299,105		1,667,614		1,417,099		1,186,825
Total equity		2,741,138		2,479,081		1,779,020		1,528,920		1,284,201


	For the Year Ended December 31,
(In thousands, except per share amounts)	2021			2020			2019			2018			2017
Other Data
Dividend declared	$	172,417		$	111,435		$	136,280		$	112,969		$	92,768
Dividends declared per common share		1.03			0.83			1.32			1.29			1.24
FFO		256,212			192,981			167,470			150,664			111,434
AFFO		215,962			181,095			149,197			124,065			99,952

	For the Year Ended December 31,
	2021			2020			2019			2018			2017
Number of properties		726			641			646			621			528
Occupancy at period end		99.8	%		99.2	%		99.7	%		99.7	%		99.6	%

Quarterly Financial Summary

(unaudited, dollars in thousands, except per share data)


	Q4 2021			Q3 2021			Q2 2021			Q1 2021			Q4 2020
Financial Summary
Investment in rental property	$	4,234,544		$	4,110,958		$	3,954,597		$	3,794,850		$	3,734,121
Less accumulated depreciation		(430,141	)		(407,354	)		(390,236	)		(369,683	)		(349,977	)
Investment in rental property, net		3,804,403			3,703,604			3,564,361			3,425,167			3,384,144
Cash and cash equivalents		21,669			16,182			78,987			10,205			100,486
Restricted cash		6,100			3,895			8,021			8,145			10,242
Total assets		4,618,648			4,501,972			4,423,611			4,206,045			4,258,483
Unsecured revolving credit facility		102,000			—			—			15,000			—
Mortgage, net		96,846			97,530			105,748			106,559			107,382
Unsecured term loans, net		646,671			646,458			910,994			910,732			961,330
Senior unsecured notes, net		843,801			843,665			472,637			472,551			472,466
Total liabilities		1,877,510			1,785,847			1,700,103			1,713,348			1,779,402
Total Broadstone Net Lease, Inc. stockholders' equity		2,577,292			2,552,004			2,554,653			2,312,532			2,299,105
Total equity (book value)		2,741,138			2,716,125			2,723,508			2,492,697			2,479,081

Revenues		92,642			122,777			84,759			82,698			82,291
General and administrative - other		7,501			7,628			7,704			8,864			8,039
Stock based compensation		1,025			924			951			1,769			1,193
General and administrative		8,526			8,552			8,655			10,633			9,232
Total operating expenses		46,649			76,065			44,452			47,963			46,078
Interest expense		16,997			15,611			15,430			16,108			17,123
Net income		32,226			30,522			22,820			23,960			17,619
Net earnings per common share, diluted	$	0.19		$	0.18		$	0.14		$	0.15		$	0.11

FFO		62,152			91,947			50,184			51,929			44,198
FFO per share, diluted	$	0.36		$	0.54		$	0.32		$	0.33		$	0.28
AFFO		58,692			55,836			52,024			49,410			46,894
AFFO per share, diluted	$	0.34		$	0.33		$	0.33		$	0.31		$	0.30

Net cash provided by operating activities		57,619			88,303			47,235			51,780			46,064
Net cash (used in) provided by investing activities		(133,925	)		(205,667	)		(175,051	)		(67,661	)		(76,443	)
Net cash provided by (used in) financing activities		83,998			50,433			196,474			(76,497	)		32,120
Distributions declared		45,857			43,423			43,484			39,653			39,299
Distributions declared per diluted share	$	0.265		$	0.255		$	0.255		$	0.250		$	0.250

Portfolio Metrics
Properties		726			696			684			661			641
Rentable square feet	32.2M			31.4M			30.2M			28.4M			28.2M
Occupancy		99.8	%		99.8	%		99.7	%		99.7	%		99.2	%
Weighted average remaining lease term (years)		10.5			10.6			10.4			10.6			10.7

Balance Sheet

(unaudited, in thousands)


	December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020
Assets
Accounted for using the operating method:
Land	$	655,374		$	616,917		$	597,779		$	572,381		$	555,748
Land improvements		295,329			291,045			291,981			282,426			279,360
Buildings and improvements		3,242,618			3,161,728			3,023,490			2,898,615			2,857,510
Equipment		11,870			11,870			11,870			11,870			11,870
Total accounted for using the operating method		4,205,191			4,081,560			3,925,120			3,765,292			3,704,488
Less accumulated depreciation		(430,141	)		(407,354	)		(390,236	)		(369,683	)		(349,977	)
Accounted for using the operating method, net		3,775,050			3,674,206			3,534,884			3,395,609			3,354,511
Accounted for using the direct financing method		28,782			28,830			28,911			28,991			29,066
Accounted for using the sales-type method		571			568			566			567			567
Investment in rental property, net		3,804,403			3,703,604			3,564,361			3,425,167			3,384,144
Cash and cash equivalents		21,669			16,182			78,987			10,205			100,486
Accrued rental income		116,874			112,163			109,278			105,674			102,117
Tenant and other receivables, net		1,310			940			618			1,022			1,604
Prepaid expenses and other assets		17,275			13,819			18,846			18,862			22,277
Interest rate swap, assets		—			—			—			239			—
Goodwill		339,769			339,769			339,769			339,769			339,769
Intangible lease assets, net		303,642			301,046			296,134			288,592			290,913
Debt issuance costs – unsecured revolving credit facility, net		4,065			4,658			5,250			5,842			6,435
Leasing fees, net		9,641			9,791			10,368			10,673			10,738
Total assets	$	4,618,648		$	4,501,972		$	4,423,611		$	4,206,045		$	4,258,483
Liabilities and equity
Unsecured revolving credit facility	$	102,000		$	—		$	—		$	15,000		$	—
Mortgages, net		96,846			97,530			105,748			106,559			107,382
Unsecured term loans, net		646,671			646,458			910,994			910,732			961,330
Senior unsecured notes, net		843,801			843,665			472,637			472,551			472,466
Interest rate swap, liabilities		27,171			36,196			46,335			43,662			72,103
Earnout liability		—			—			10,063			6,385			7,509
Accounts payable and other liabilities		38,038			35,732			32,279			31,743			35,684
Dividends payable		45,914			43,874			43,184			39,329			39,252
Accrued interest payable		6,473			9,895			3,885			9,896			4,023
Intangible lease liabilities, net		70,596			72,497			74,978			77,491			79,653
Total liabilities		1,877,510			1,785,847			1,700,103			1,713,348			1,779,402
Equity
Broadstone Net Lease, Inc. stockholders' equity:
Preferred stock, $0.001 par value		—			—			—			—			—
Common stock, $0.00025 par value		41			40			40			36			27
Class A Common Stock, $0.00025 par value		—			—			—			—			9
Additional paid-in capital		2,924,168			2,895,219			2,890,131			2,625,320			2,624,997
Cumulative distributions in excess of retained earnings		(318,476	)		(305,665	)		(293,622	)		(274,140	)		(259,673	)
Accumulated other comprehensive loss		(28,441	)		(37,590	)		(41,896	)		(38,684	)		(66,255	)
Total Broadstone Net Lease, Inc. stockholders’ equity		2,577,292			2,552,004			2,554,653			2,312,532			2,299,105
Non-controlling interests		163,846			164,121			168,855			180,165			179,976
Total equity		2,741,138			2,716,125			2,723,508			2,492,697			2,479,081
Total liabilities and equity	$	4,618,648		$	4,501,972		$	4,423,611		$	4,206,045		$	4,258,483

Income Statement Summary

(unaudited, in thousands, except per share data)


	Three Months Ended
	December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020
Revenues
Lease revenues, net	$	92,642		$	122,777		$	84,759		$	82,698		$	82,291
Operating expenses
Depreciation and amortization		33,476			36,682			31,225			30,713			30,182
Property and operating expense		4,440			4,842			4,572			4,605			4,986
General and administrative		8,526			8,552			8,655			10,633			9,232
Provision for impairment of investment in rental properties		207			25,989			—			2,012			1,678
Total operating expenses		46,649			76,065			44,452			47,963			46,078
Other income (expenses)
Interest income		6			—			6			5			4
Interest expense		(16,997	)		(15,611	)		(15,430	)		(16,108	)		(17,123	)
Cost of debt extinguishment		—			(242	)		—			(126	)		(3	)
Gain on sale of real estate		3,732			1,220			3,838			4,733			5,260
Income taxes		(457	)		(473	)		(301	)		(413	)		141
Internalization expenses		—			—			—			—			(182	)
Change in fair value of earnout liability		—			(1,059	)		(5,604	)		1,124			(6,706	)
Other (expenses) income		(51	)		(25	)		4			10			15
Net income		32,226			30,522			22,820			23,960			17,619
Net income attributable to non-controlling interests		(1,935	)		(1,824	)		(1,606	)		(1,737	)		(1,357	)
Net income attributable to Broadstone Net Lease, Inc.	$	30,291		$	28,698		$	21,214		$	22,223		$	16,262

Weighted average number of common shares outstanding
Basic1		161,545			159,226			146,119			145,338			143,916
Diluted1		172,094			169,587			157,430			156,724			155,956
Net earnings per common share2
Basic and diluted	$	0.19		$	0.18		$	0.14		$	0.15		$	0.11

1 Excludes 373,678, 378,244, 386,772, 334,413, and 340,963 weighted average shares of unvested restricted common stock for the three months ended December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively.

2 Excludes $0.1 million from the numerator for the three months ended December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, related to dividends declared on shares of unvested restricted common stock.

Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO)

(unaudited, in thousands, except per share data)


	Three Months Ended
	December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020
Net income	$	32,226		$	30,522		$	22,820		$	23,960		$	17,619
Real property depreciation and amortization		33,451			36,656			31,202			30,690			30,161
Gain on sale of real estate		(3,732	)		(1,220	)		(3,838	)		(4,733	)		(5,260	)
Provision for impairment of investment in rental properties		207			25,989			—			2,012			1,678
FFO	$	62,152		$	91,947		$	50,184		$	51,929		$	44,198
Straight-line rent adjustment		(5,321	)		(4,930	)		(4,979	)		(5,074	)		(5,367	)
Write-off of accrued rental income		—			1,496			—			442			242
Lease termination fee		—			(35,000	)		—			—			—
Adjustment to provision for credit losses		(37	)		—			—			(1	)		(6	)
Cost of debt extinguishment		—			242			—			126			3
Amortization of debt issuance costs		1,022			962			956			914			917
Amortization of net mortgage premiums		(26	)		(34	)		(37	)		(35	)		(36	)
Loss (gain) on interest rate swaps and other non-cash interest expense		696			85			(42	)		(41	)		(41	)
Amortization of lease intangibles		(899	)		(940	)		(641	)		(728	)		(1,150	)
Stock-based compensation		1,025			924			951			1,769			1,193
Severance		29			—			32			1,243			68
Change in fair value of earnout liability		—			1,059			5,604			(1,124	)		6,706
Internalization expenses		—			—			—			—			182
Other expenses (income)		51			25			(4	)		(10	)		(15	)
AFFO	$	58,692		$	55,836		$	52,024		$	49,410		$	46,894

Diluted weighted average shares outstanding1		172,094			169,587			157,430			156,724			155,956
Net earnings per diluted share2	$	0.19		$	0.18		$	0.14		$	0.15		$	0.11
FFO per diluted share2		0.36			0.54			0.32			0.33			0.28
AFFO per diluted share2		0.34			0.33			0.33			0.31			0.30

EBITDA, EBITDAre, and Other-Non GAAP Operating Measures

(unaudited, in thousands)


	Three Months Ended
	December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020
Net income	$	32,226		$	30,522		$	22,820		$	23,960		$	17,619
Depreciation and amortization		33,476			36,682			31,225			30,713			30,182
Interest expense		16,997			15,611			15,430			16,108			17,123
Income taxes		457			473			301			413			(141	)
EBITDA	$	83,156		$	83,288		$	69,776		$	71,194		$	64,783
Provision for impairment of investment in rental properties		207			25,989			—			2,012			1,678
Gain on sale of real estate		(3,732	)		(1,220	)		(3,838	)		(4,733	)		(5,260	)
EBITDAre	$	79,631		$	108,057		$	65,938		$	68,473		$	61,201
Adjustment for current quarter acquisition activity 1		2,002			3,534			2,761			1,365			1,703
Adjustment for current quarter disposition activity 2		(180	)		(1,387	)		(353	)		(278	)		(318	)
Adjustment to exclude non-recurring and other expenses 3		—			—			—			2,100			182
Adjustment to exclude change in fair value of earnout liability		—			1,059			5,604			(1,124	)		6,706
Adjustment to exclude write-off of accrued rental income		—			1,496			—			442			242
Adjustment to exclude cost of debt extinguishments		—			242			—			126			—
Adjustment to exclude lease termination fees		—			(35,000	)		—			—			—
Adjusted EBITDAre	$	81,453		$	78,001		$	73,950		$	71,104		$	69,716
General and administrative		8,523			8,537			8,650			10,632			9,219
Adjusted Net Operating Income ("NOI")	$	89,976		$	86,538		$	82,600		$	81,736		$	78,935
Straight-line rental revenue, net		(5,611	)		(5,789	)		(5,245	)		(4,762	)		(5,339	)
Other amortization and non-cash charges		(847	)		(616	)		(642	)		(737	)		(1,170	)
Adjusted Cash NOI	$	83,518		$	80,133		$	76,713		$	76,237		$	72,426
Annualized EBITDAre	$	318,526		$	432,221		$	263,761		$	273,888		$	244,805
Annualized Adjusted EBITDAre		325,812			311,998			295,808			284,414			278,867
Annualized Adjusted NOI		359,904			346,145			330,410			326,944			315,743
Annualized Adjusted Cash NOI		334,072			320,524			306,863			304,948			289,704

1 Reflects an adjustment to give effect to all acquisition during the quarter as if they had been acquired as of the beginning of the quarter.

2 Reflects an adjustment to give effect to all dispositions during the quarter as if they had been sold as of the beginning of the quarter.

3 Amounts include $1.2 million of severance and $0.9 million of accelerated stock-based compensation associated with the departure of executive officers during the three months ended March 31, 2021, and expenses directly associated with the Internalization in 2020.

Lease Revenues Detail

(unaudited, in thousands)


	Three Months Ended
	December 31, 2021		September 30, 2021		June 30, 2021			March 31, 2021			December 31, 2020
Contractual rental amounts billed for operating leases	$	81,482	$	78,886	$	75,011		$	73,245		$	72,558
Adjustment to recognize contractual operating lease billings on a straight- line basis		5,372		4,942		4,724			4,809			4,498
Write-off of accrued rental income		—		—		—			(442	)		(242	)
Variable rental amounts earned		433		130		114			91			455
Earned income from direct financing leases		725		726		728			730			756
Interest income from sales-type leases		15		14		15			14			5
Operating expenses billed to tenants		4,464		4,414		4,196			4,388			4,389
Other income from real estate transactions		1		33,515		28			5			(16	)
Adjustment to revenue recognized for uncollectible rental amounts billed, net		150		150		(57	)		(142	)		(112	)
Total Lease revenues, net	$	92,642	$	122,777	$	84,759		$	82,698		$	82,291

Capital Structure

(unaudited, in thousands, except per share data)


EQUITY
Shares of Common Stock		162,383
OP Units		10,323
Common Stock & OP Units		172,706
Price Per Share / Unit at December 31, 2021	$	24.82
IMPLIED EQUITY MARKET CAPITALIZATION	$	4,286,574
% of Total Capitalization		71.6	%
DEBT
Unsecured Revolving Credit Facility - 20231	$	102,000
Unsecured Term Loan Facilities		650,000
Unsecured Term Loan - 2022		60,000
Unsecured Term Loan - 2024		190,000
Unsecured Term Loan - 2026		400,000
Senior Unsecured Notes		850,000
Senior Unsecured Notes - 2027		150,000
Senior Unsecured Notes - 2028		225,000
Senior Unsecured Notes - 2030		100,000
Senior Unsecured Notes - 2031		375,000
Mortgage Debt - Various		97,160
TOTAL DEBT	$	1,699,160
% of Total Capitalization		28.4	%
% of Total Debt Floating Rate Debt		7.0	%
% of Total Debt Fixed Rate Debt		93.0	%
% of Total Debt Secured Debt		5.7	%
% of Total Debt Unsecured Debt		94.3	%
ENTERPRISE VALUE
Total Capitalization	$	5,985,734
Less: Cash and Cash Equivalents		(21,669	)
Enterprise Value	$	5,964,065

1 On January 28, 2022, BNL amended and restated the unsecured revolving credit facility, extending the maturity date to March 2026.

Equity Rollforward

(unaudited, in thousands)


	Shares of Common Stock			OP Units			Total Diluted Shares
Balance, January 1, 2021		145,609			11,399			157,008
Board of directors fees		12			—			12
Stock-based compensation activity		199			—			199
Retirement of common stock		(45	)		—			(45	)
OP Unit conversions		38			(38	)		—
Balance, March 31, 2021		145,813			11,361			157,174
Board of directors fees		13			—			13
Stock-based compensation activity		1			—			1
Retirement of common stock		(16	)		—			(16	)
OP Unit conversions		1,127			(1,127	)		—
Earnout tranche 1 issuance		145			248			393
Public follow-on equity offering		11,500			—			11,500
Balance, June 30, 2021		158,583			10,482			169,065
Board of directors fees		13			—			13
Retirement of common stock		(3	)		—			(3	)
Forfeiture of common stock		(5	)		—			(5	)
OP Unit conversions		1,723			(1,723	)		—
Earnout tranche 2, 3, and 4 issuance		944			1,611			2,555
Balance, September 30, 2021		161,255			10,370			171,625
Board of directors fees		11			—			11
Forfeiture of common stock		(2	)		—			(2	)
OP Unit conversions		47			(47	)		—
ATM offering		1,072			—			1,072
Balance, December 31, 2021		162,383			10,323			172,706
Percentage ownership of OP at December 31, 2021		94.0	%		6.0	%		100	%

Debt Outstanding

(unaudited, in thousands)


	Outstanding Balance
	December 31,			December 31,
	2021			2020			Interest Rate	Maturity Date
Unsecured revolving credit facility	$	102,000		$	—		one-month LIBOR + 1.00%	Sep. 20231
Unsecured term loans:
2022 Unsecured Term Loan		60,000			60,000		one-month LIBOR + 1.00%	Feb. 2022
2023 Unsecured Term Loan		—			265,000		one-month LIBOR + 1.10%	Jan. 2023
2024 Unsecured Term Loan		190,000			190,000		one-month LIBOR + 1.00%	Jun. 2024
2026 Unsecured Term Loan		400,000			450,000		one-month LIBOR + 1.00%	Feb. 2026
Total unsecured term loans		650,000			965,000
Unamortized debt issuance costs, net		(3,329	)		(3,670	)
Total unsecured term loans, net		646,671			961,330
Senior unsecured notes:
2027 Senior Unsecured Notes - Series A		150,000			150,000		4.84%	Apr. 2027
2028 Senior Unsecured Notes - Series B		225,000			225,000		5.09%	Jul. 2028
2030 Senior Unsecured Notes - Series C		100,000			100,000		5.19%	Jul. 2030
2031 Senior Unsecured Public Notes		375,000			—		2.60%	Sep. 2031
Total senior unsecured notes		850,000			475,000
Unamortized debt issuance costs and original issuance discount, net		(6,199	)		(2,534	)
Total senior unsecured notes, net		843,801			472,466
Total unsecured debt, net	$	1,592,472		$	1,433,796

1 On January 28, 2022, BNL amended and restated the unsecured revolving credit facility, extending the maturity date to March 2026.


	Origination	Maturity
	Date	Date	Interest	December 31,
Lender	(Month/Year)	(Month/Year)	Rate	2021			2020
Wilmington Trust National Association	Apr-19	Feb-28	4.92%	$	46,760		$	47,945
Wilmington Trust National Association	Jun-18	Aug-25	4.36%		19,557			19,947
PNC Bank	Oct-16	Nov-26	3.62%		17,094			17,498
T2 Durham I, LLC	Jul - 21	Jul -24	Greater of Prime + 1.25% or 5.00%		7,500			—
Aegon	Apr-12	Oct-23	6.38%		6,249			7,039
Sun Life	Mar-12	Oct-21	5.13%		—			10,469
M&T Bank	Oct-17	Aug-21	one - month LIBOR+3%		—			4,769
Total mortgages					97,160			107,667
Debt issuance costs, net					(314	)		(285	)
Mortgages, net				$	96,846		$	107,382


Year of Maturity	Revolving Credit Facility2		Term Loans		Senior Notes		Mortgages		Total
2022	$	—	$	60,000	$	—	$	2,906	$	62,906
2023		102,000		—		—		7,582		109,582
2024		—		190,000		—		9,760		199,760
2025		—		—		—		20,195		20,195
2026		—		400,000		—		16,843		416,843
Thereafter		—		—		850,000		39,874		889,874
Total	$	102,000	$	650,000	$	850,000	$	97,160	$	1,699,160

2 On January 28, 2022, BNL amended and restated the unsecured revolving credit facility, extending the maturity date to March 2026.

Net Debt Metrics

(unaudited, in thousands)



	December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020
Debt
Unsecured revolving credit facility	$	102,000		$	—		$	—		$	15,000		$	—
Unsecured term loans, net		646,671			646,458			910,994			910,732			961,330
Senior unsecured notes, net		843,801			843,665			472,637			472,551			472,466
Mortgages, net		96,846			97,530			105,748			106,559			107,382
Debt issuance costs		9,842			10,215			6,625			6,988			6,489
Gross Debt	��	1,699,160			1,597,868			1,496,004			1,511,830			1,547,667
Cash and cash equivalents		(21,669	)		(16,182	)		(78,987	)		(10,205	)		(100,486	)
Restricted cash		(6,100	)		(3,895	)		(8,021	)		(8,145	)		(10,242	)
Net Debt	$	1,671,391		$	1,577,791		$	1,408,996		$	1,493,480		$	1,436,939
Net Debt to Annualized EBITDAre	5.25x			3.65x			5.34x			5.45x			5.87x
Net Debt to Annualized Adjusted EBITDAre	5.13x			5.06x			4.76x			5.25x			5.15x

Covenants

(unaudited)

The following is a summary of key financial covenants for the Company’s unsecured credit facility and unsecured term loans and senior notes. The covenants associated with the Revolving Credit Facility, Unsecured Term Loans with commercial banks, and the Series A-C Senior Unsecured Notes, are reported to the lenders via quarterly covenant reporting packages. The covenants associated with the 2031 Senior Unsecured Public Notes are not required to be reported externally to third parties, and are instead calculated in connection with borrowing activity and for financial reporting purposes only. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show that as of December 31, 2021, the Company believes it is in compliance with the covenants.

Covenants

Required

Revolving Credit Facility and Unsecured Term Loans

Senior Unsecured
Notes Series
A, B, & C

2031 Senior Unsecured Public Notes

Leverage ratio

≤ 0.60 to 1.00

0.35

Not Applicable

Secured indebtedness ratio

≤ 0.40 to 1.00

0.02

Not Applicable

Unencumbered coverage ratio

≥ 1.75 to 1.00

7.12

Not Applicable

Fixed charge coverage ratio

≥ 1.50 to 1.00

4.16

Not Applicable

Total unsecured indebtedness to
total unencumbered eligible
property value

≤ 0.60 to 1.00

0.35

0.37

Not Applicable

Dividends and other restricted
payments

Only applicable
in case of default

Not Applicable

Aggregate debt ratio

≤ 0.60 to 1.00

Not Applicable

0.37

Consolidated income available for
debt to annual debt service
charge

≥ 1.50 to 1.00

Not Applicable

4.92

Total unencumbered assets to
total unsecured debt

≥ 1.50 to 1.00

Not Applicable

2.76

Secured debt ratio

≤ 0.40 to 1.00

Not Applicable

0.02

Debt Maturities

(unaudited, dollars in millions)

The Company utilizes diversified sources of debt capital including unsecured bank debt, unsecured notes, and secured mortgages (where appropriate).

1 On January 28, 2022, BNL amended and restated the unsecured revolving credit facility, increasing its capacity to $1.0 billion and extending the maturity date to March 2026.

Portfolio Activity

Acquisitions

(unaudited, square feet and dollars in thousands)

The following table summarizes the Company’s property acquisition activity during 2021.


QTD Q1 2021
Property Type	Number of Properties		Square Feet ('000s)		Weighted Average Lease Term (years)		Weighted Average Annual Rent Increase			Acquisition Price ($'000s)
Retail		24		178		16.3		1.1	%	$	68,158
Healthcare		4		51		11.5		2.0	%		18,983
Restaurant 1		—		—		16.8		2.9	%		181
Total Properties		28		229		15.3		1.3	%	$	87,322
Weighted average initial cash cap rate											6.4	%
Weighted average initial GAAP cap rate											6.9	%

QTD Q2 2021
Property Type	Number of Properties		Square Feet ('000s)		Weighted Average Lease Term (years)		Weighted Average Annual Rent Increase			Acquisition Price ($'000s)
Industrial		12		1,553		15.5		1.5	%	$	115,078
Healthcare		11		136		10.5		1.7	%		46,050
Retail		11		218		9.8		0.4	%		32,830
Total Properties		34		1,906		13.2		1.4	%	$	193,959
Weighted average initial cash cap rate											6.2	%
Weighted average initial GAAP cap rate											6.8	%

QTD Q3 2021
Property Type	Number of Properties		Square Feet ('000s)		Weighted Average Lease Term (years)		Weighted Average Annual Rent Increase			Acquisition Price ($'000s)
Industrial		9		1,358		18.4		1.9	%	$	142,695
Retail		8		105		8.4		0.5	%		23,229
Healthcare		1		148		25.0		2.0	%		60,000
Total Properties		18		1,611		19.4		1.8	%	$	225,924
Weighted average initial cash cap rate											6.5	%
Weighted average initial GAAP cap rate											7.7	%

QTD Q4 2021
Property Type	Number of Properties		Square Feet ('000s)		Weighted Average Lease Term (years)		Weighted Average Annual Rent Increase			Acquisition Price ($'000s)
Retail		22		238		10.3		0.5	%	$	42,038
Industrial		5		610		15.3		1.9	%		60,037
Restaurant		5		32		20.1		1.5	%		27,148
Healthcare		3		34		8.9		2.4	%		16,906
Office		1		7		20.1		1.5	%		1,398
Total Properties		36		921		14.2		1.5	%	$	147,527
Weighted average initial cash cap rate											6.0	%
Weighted average initial GAAP cap rate											6.6	%

FY 2021
Property Type	Number of Properties		Square Feet ('000s)		Weighted Average Lease Term (years)		Weighted Average Annual Rent Increase			Acquisition Price ($'000s)
Retail		65		739		12.4		0.7	%		166,255
Industrial		26		3,520		16.8		1.7	%		317,810
Healthcare		19		369		17.3		2.0	%		141,939
Restaurant 1		5		32		20.1		1.5	%		27,329
Office		1		7		20.1		1.5	%		1,398
Total Properties		116		4,667		15.9		1.5	%		654,731
Weighted average initial cash cap rate											6.3	%
Weighted average initial GAAP cap rate											7.1	%

1 Acquisition of additional land to an existing property.

Dispositions

(unaudited, square feet and dollars in thousands)

The following table summarizes the Company’s property disposition activity during 2021.


QTD Q1 2021
Property Type	Number of Properties		Square Feet ('000s)		Acquisition Price ($'000s)		Disposition Price ($'000s)		Net Book Value ($'000s)		Cash Cap Rate
Healthcare		5		31		12,420		14,689	$	10,773		7.4	%
Restaurant		3		14		6,965		8,181		6,599		6.4	%
Total Properties		8		45	$	19,385	$	22,870	$	17,373		7.0	%

QTD Q2 2021
Property Type	Number of Properties		Square Feet ('000s)		Acquisition Price ($'000s)		Disposition Price ($'000s)		Net Book Value ($'000s)		Cash Cap Rate
Restaurant		10		36	$	17,973	$	20,876	$	15,694		6.4	%
Healthcare		1		6		1,689		1,400		1,506	N/A			1
Total Properties		11		42	$	19,662	$	22,276	$	17,200		6.4	%	2

QTD Q3 2021
Property Type	Number of Properties		Square Feet ('000s)		Acquisition Price ($'000s)		Disposition Price ($'000s)		Net Book Value ($'000s)		Cash Cap Rate
Office 3		2		407	$	54,600	$	16,000	$	41,085	N/A			1
Restaurant		3		20		7,037		8,067		6,639		6.0	%	2
Retail		1		29		5,758		2,500		2,508	N/A			1
Total Properties		6		455	$	67,396	$	26,567	$	50,232		6.0	%	2

QTD Q4 2021
Property Type	Number of Properties		Square Feet ('000s)		Acquisition Price ($'000s)		Disposition Price ($'000s)		Net Book Value ($'000s)		Cash Cap Rate
Retail		3		82	$	11,500	$	13,400	$	9,404		7.5	%
Healthcare		2		33		4,767		1,695		1,493	N/A			1
Restaurant		1		5		872		730		782	N/A			1
Total Properties		6		120	$	17,140	$	15,825	$	11,679		7.5	%

FY 2021
Property Type	Number of Properties		Square Feet ('000s)		Acquisition Price ($'000s)		Disposition Price ($'000s)		Net Book Value ($'000s)		Cash Cap Rate
Restaurant		17		75	$	32,847	$	37,854	$	29,714		6.3	%	2
Healthcare		8		70		18,876		17,784		13,772		7.2	%	2
Office 3		2		407		54,600		16,000		41,085	N/A			1
Retail		4		111		17,258		15,900		11,912		7.5	%	2
Total Properties		31		663	$	123,582	$	87,538	$	96,484		6.7	%	2

1 Properties were vacant at the time of disposition.

2 Weighted average cash cap rate on tenanted properties sold.

3 During the third quarter, we executed the termination of a long-term, master lease with an investment-grade office tenant in exchange for a termination fee of $35.0 million. Simultaneously, we sold the underlying properties to an unrelated third party for gross proceeds of $16.0 million. The $35.0 million lease termination fee was recognized separately as Lease revenue, net.

Portfolio at a Glance: Key Metrics


Properties	726
U.S. States	42
Canadian Provinces	1
Total Rentable Sq. Footage	32.2M
Tenants	204
Brands	189
Industries	56
Occupancy (based on SF)	99.8%
Top Ten Tenant Concentration	17.5%
Top Twenty Tenant Concentration	30.3%
Investment Grade (tenant/guarantor)	15.7%
Financial Reporting Coverage1	94.0%
Rent Coverage Ratio2	3.2x
Weighted Average Annual Rent Increases	2.0%
Weighted Average Remaining Lease Term	10.5 years

1 Includes 9.4% related to tenants not required to provide financial information under the terms of our lease, but whose financial statements are available publicly.

2 Represents rent coverage ratio for Restaurant property type only.

Diversification: Tenants & Brands

(unaudited)

Top 20 Tenants


Tenant	Property Type	# Properties		ABR ($'000s)		ABR as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
Jack's Family Restaurants LP	Quick Service Restaurants		43	$	7,166		2.1	%		147		0.4	%
Red Lobster Hospitality & Red Lobster Restaurants LLC	Casual Dining		22		6,994		2.1	%		181		0.6	%
Joseph T. Ryerson & Son, Inc	Distribution & Warehouse		11		6,395		1.9	%		1,537		4.8	%
Axcelis Technologies, Inc.	Flex and R&D		1		5,859		1.8	%		417		1.3	%
Hensley & Company	Distribution & Warehouse		3		5,756		1.7	%		577		1.8	%
BluePearl Holdings, LLC	Animal Health Services		13		5,398		1.6	%		160		0.5	%
Outback Steakhouse of Florida LLC	Casual Dining		22		5,278		1.6	%		140		0.4	%
Tractor Supply Company	General Merchandise		21		5,246		1.6	%		417		1.3	%
Dollar General Corporation	General Merchandise		53		5,218		1.6	%		492		1.5	%
Krispy Kreme Doughnut Corporation	Quick Service Restaurants/ Food Processing		27		5,034		1.5	%		156		0.5	%
Total Top 10 Tenants			216	$	58,344		17.5	%		4,224		13.1	%

Siemens Medical Solutions USA, Inc. & Siemens Corporation	Manufacturing/Flex and R&D		2	$	4,936		1.5	%		545		1.7	%
Big Tex Trailer Manufacturing, Inc.	Automotive/Distribution & Warehouse/Manufacturing/ Corporate Headquarters		17		4,859		1.4	%		1,302		4.0	%
Santa Cruz Valley Hospital	Healthcare Facilities		1		4,500		1.3	%		148		0.5	%
Nestle' Dreyer's Ice Cream Company	Cold Storage		1		4,476		1.3	%		310		1.0	%
Arkansas Surgical Hospital	Surgical		1		4,367		1.3	%		129		0.4	%
American Signature, Inc.	Home Furnishings		6		4,224		1.3	%		474		1.5	%
Cascade Aerospace Inc.	Manufacturing		1		4,087		1.2	%		231		0.7	%
Aventiv Technologies, LLC	Corporate Headquarters		1		3,896		1.2	%		154		0.5	%
Fresh Express Incorporated	Food Processing		1		3,869		1.2	%		335		1.0	%
Kith Kitchens	Manufacturing		3		3,561		1.1	%		843		2.6	%
Total Top 20 Tenants			250	$	101,119		30.3	%		8,695		27.0	%

Top 20 Brands

(unaudited)


Brand	Property Type	# Properties		ABR ($'000s)		ABR as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
Jack's Family Restaurants	Quick Service Restaurants		43	$	7,166		2.1	%		147		0.4	%
Red Lobster	Casual Dining		22		6,994		2.1	%		181		0.6	%
Ryerson	Distribution & Warehouse		11		6,395		1.9	%		1,537		4.8	%
Axcelis	Flex and R&D		1		5,859		1.8	%		417		1.3	%
Hensley	Distribution & Warehouse		3		5,756		1.7	%		577		1.8	%
BluePearl Veterinary Partners	Animal Health Services		13		5,398		1.6	%		160		0.5	%
Bob Evans Farms	Casual Dining/Food Processing		21		5,285		1.6	%		281		0.9	%
Tractor Supply Co.	General Merchandise		21		5,246		1.6	%		417		1.3	%
Dollar General	General Merchandise		53		5,218		1.6	%		492		1.5	%
Krispy Kreme	Quick Service Restaurants/ Food Processing		27		5,034		1.5	%		156		0.5	%
Total Top 10 Brands			215	$	58,351		17.5	%		4,365		13.6	%

Siemens	Manufacturing/Flex and R&D		2	$	4,936		1.5	%		545		1.7	%
Big Tex Trailers	Automotive/Distribution & Warehouse/Manufacturing/ Corporate Headquarters		17		4,859		1.4	%		1,302		4.0	%
Outback Steakhouse	Casual Dining		20		4,566		1.4	%		126		0.4	%
Wendy's	Quick Service Restaurants		31		4,549		1.4	%		89		0.2	%
Santa Cruz Valley Hospital	Healthcare Facilities		1		4,500		1.3	%		148		0.5	%
Nestle'	Cold Storage		1		4,476		1.3	%		310		1.0	%
Arkansas Surgical Hospital	Surgical		1		4,367		1.3	%		129		0.4	%
Value City Furniture	Home Furnishings		6		4,224		1.3	%		474		1.5	%
Taco Bell	Quick Service Restaurants		31		4,136		1.3	%		80		0.2	%
Cascade Aerospace	Manufacturing		1		4,087		1.2	%		231		0.7	%
Total Top 20 Brands			326	$	103,051		30.9	%		7,799		24.2	%

Diversification: Property Type

(unaudited, rent percentages based on ABR)

Diversification: Property Type (continued)

(unaudited)


Property Type	# Properties		ABR ($'000s)		ABR as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
Industrial
Manufacturing		64	$	50,377		15.1	%		9,147		28.4	%
Distribution & Warehouse		45		48,665		14.6	%		9,221		28.6	%
Food Processing		16		21,495		6.4	%		2,405		7.5	%
Flex and R&D		7		17,132		5.1	%		1,457		4.5	%
Cold Storage		4		12,686		3.8	%		933		2.9	%
Services		20		8,168		2.4	%		454		1.4	%
Industrial Total		156		158,523		47.4	%		23,617		73.3	%
Healthcare
Clinical		51		25,596		7.6	%		1,049		3.3	%
Healthcare Services		28		12,444		3.7	%		463		1.4	%
Animal Health Services		27		10,297		3.1	%		405		1.3	%
Surgical		12		10,226		3.1	%		329		1.0	%
Life Science		9		7,655		2.3	%		549		1.7	%
Untenanted		1		—		0.0	%		18		0.1	%
Healthcare Total		128		66,218		19.8	%		2,813		8.8	%
Restaurant
Quick Service Restaurants		148		24,726		7.4	%		505		1.6	%
Casual Dining		87		21,269		6.4	%		559		1.7	%
Restaurant Total		235		45,995		13.8	%		1,064		3.3	%
Retail
General Merchandise		112		18,441		5.5	%		1,416		4.4	%
Automotive		65		11,932		3.6	%		762		2.4	%
Home Furnishings		13		7,030		2.1	%		797		2.5	%
Untenanted		1		—		0.0	%		34		0.1	%
Retail Total		191		37,403		11.2	%		3,009		9.4	%
Office
Corporate Headquarters		7		10,406		3.1	%		679		2.1	%
Strategic Operations		5		9,655		2.9	%		615		1.9	%
Call Center		4		5,887		1.8	%		391		1.2	%
Office Total		16		25,948		7.8	%		1,685		5.2	%
Total		726	$	334,087		100.0	%		32,188		100.0	%

Key Statistics by Property Type


Industrial
Number of properties	156
Square feet (000s)	23,617
Weighted average lease term (years)	10.5
Weighted average annual rent escalation	2.0	%

Healthcare
Number of properties	128
Square feet (000s)	2,813
Weighted average lease term (years)	8.9
Weighted average annual rent escalation	2.2	%

Restaurants
Number of properties	235
Square feet (000s)	1,064
Weighted average lease term (years)	15.0
Weighted average annual rent escalation	2.0	%

Retail
Number of properties	191
Square feet (000s)	3,009
Weighted average lease term (years)	10.5
Weighted average annual rent escalation	1.5	%

Office
Number of properties	16
Square feet (000s)	1,685
Weighted average lease term (years)	6.5
Weighted average annual rent escalation	2.4	%

Diversification: Tenant Industry
(unaudited)


Industry	# Properties		ABR ($'000s)		ABR as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
Healthcare Facilities		102	$	53,099		15.9	%		2,028		6.3	%
Restaurants		238		46,766		14.0	%		1,106		3.4	%
Packaged Foods & Meats		11		16,578		5.0	%		1,820		5.7	%
Distributors		25		14,311		4.3	%		2,528		7.9	%
Food Distributors		7		12,978		3.9	%		1,556		4.8	%
Auto Parts & Equipment		39		12,443		3.7	%		2,387		7.4	%
Specialized Consumer Services		47		12,078		3.6	%		720		2.2	%
Metal & Glass Containers		8		9,796		2.9	%		2,206		6.9	%
Specialty Stores		25		9,685		2.9	%		1,140		3.5	%
Healthcare Services		18		9,105		2.7	%		515		1.6	%
Home Furnishings		5		8,955		2.7	%		1,785		5.5	%
Home Furnishing Retail		16		8,845		2.6	%		1,149		3.6	%
Aerospace & Defense		7		8,693		2.6	%		952		3.0	%
General Merchandise Stores		83		8,269		2.5	%		747		2.3	%
Electronic Components		2		6,674		2.0	%		466		1.4	%
Other (41 industries)		91		95,812		28.7	%		11,031		34.3	%
Untenanted properties		2		—		—			52		0.2	%
Total		726	$	334,087		100.0	%		32,188		100.0	%

Diversification: Geography

(unaudited, rent percentages based on ABR)


State	# Properties		ABR ($'000s)		ABR as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio			State	# Properties		ABR ($'000s)		ABR as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
TX		67	$	35,461		10.6	%		3,491		10.8	%	NJ		3		4,904		1.5	%		366		1.1	%
IL		24		20,130		6.0	%		1,981		6.2	%	MO		10		4,822		1.5	%		959		3.0	%
WI		35		19,687		5.9	%		2,069		6.4	%	WA		15		4,223		1.3	%		150		0.5	%
FL		46		16,398		4.9	%		854		2.7	%	LA		4		3,394		1.0	%		194		0.6	%
MI		47		16,230		4.9	%		1,537		4.8	%	NE		6		3,027		0.9	%		509		1.6	%
CA		10		15,559		4.7	%		1,493		4.6	%	MD		4		2,917		0.9	%		293		0.9	%
OH		36		14,925		4.5	%		1,400		4.3	%	NM		8		2,782		0.8	%		96		0.3	%
AZ		9		13,098		3.9	%		909		2.8	%	MS		8		2,772		0.8	%		334		1.0	%
NC		35		12,936		3.9	%		1,308		4.1	%	IA		4		2,718		0.8	%		622		1.9	%
IN		29		12,763		3.8	%		1,759		5.5	%	WV		16		2,471		0.7	%		109		0.3	%
MN		20		12,738		3.8	%		2,021		6.3	%	SC		13		2,469		0.7	%		308		1.0	%
AL		51		11,445		3.4	%		855		2.7	%	CO		4		2,423		0.7	%		125		0.4	%
TN		45		10,825		3.2	%		536		1.7	%	UT		3		2,379		0.7	%		280		0.9	%
NY		26		10,660		3.2	%		680		2.1	%	CT		2		1,699		0.5	%		55		0.2	%
GA		29		10,355		3.1	%		1,538		4.8	%	MT		7		1,544		0.5	%		43		0.1	%
MA		5		10,291		3.1	%		1,026		3.2	%	NV		2		1,336		0.4	%		81		0.2	%
AR		11		7,506		2.3	%		282		0.9	%	DE		4		1,154		0.4	%		133		0.4	%
OK		20		7,126		2.1	%		944		2.9	%	ND		2		943		0.3	%		28		0.1	%
PA		14		6,737		2.0	%		1,010		3.1	%	VT		2		414		0.1	%		24		0.1	%
KY		21		6,036		1.8	%		691		2.1	%	WY		1		307		0.1	%		21		0.1	%
VA		17		5,388		1.6	%		204		0.6	%	Total US		725	$	330,000		98.8	%		31,957		99.3	%
KS		10		5,008		1.5	%		639		2.0	%	Total Canada		1		4,087		1.2	%		231		0.7	%
													Grand Total		726	$	334,087		100.0	%		32,188		100.0	%

Lease Expirations

(unaudited, rent percentages based on ABR)


Expiration Year	# Properties		ABR ($'000s)		ABR as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
2022		1	$	1,566		0.5	%		46		0.1	%
2023		7		5,375		1.6	%		538		1.7	%
2024		11		13,996		4.2	%		1,689		5.2	%
2025		20		8,403		2.5	%		698		2.2	%
2026		35		19,055		5.7	%		1,414		4.4	%
2027		28		23,296		7.0	%		2,019		6.3	%
2028		33		22,765		6.8	%		2,282		7.1	%
2029		71		21,807		6.5	%		2,711		8.4	%
2030		99		52,934		15.8	%		5,089		15.8	%
2031		30		7,897		2.4	%		700		2.2	%
2032		54		28,534		8.5	%		3,248		10.1	%
2033		50		18,754		5.6	%		1,950		6.0	%
2034		32		5,850		1.8	%		376		1.2	%
2035		16		11,694		3.5	%		1,552		4.8	%
2036		86		25,693		7.7	%		2,854		8.9	%
2037		24		17,256		5.2	%		1,367		4.2	%
2038		33		6,839		2.0	%		306		0.9	%
2039		12		9,145		2.7	%		933		2.9	%
2040		33		5,906		1.8	%		317		1.0	%
2041		24		12,789		3.8	%		1,506		4.7	%
Thereafter		25		14,533		4.4	%		541		1.7	%
Untenanted properties		2		—		—			52		0.2	%
Total		726	$	334,087		100.0	%		32,188		100.0	%

Portfolio Occupancy

(unaudited, based on square feet)

Definitions and Explanations

Adjusted NOI, Annualized Adjusted NOI, Adjusted Cash NOI and Annualized Adjusted Cash NOI: Our reported results and net earnings per diluted share are presented in accordance with accounting principles generally accepted in the United States of America (GAAP). Adjusted NOI and Adjusted Cash NOI are non-GAAP financial measures that we believe are useful to assess property-level performance. We compute Adjusted NOI by adjusting Adjusted EBITDAre (defined below) to exclude general and administrative expenses incurred at the corporate level. Given the net lease nature of our portfolio, we do not incur general and administrative expenses at the property level. To compute Adjusted Cash NOI, we adjust Adjusted NOI to exclude non-cash items included in total revenues and property expenses, such as straight-line rental revenue and other amortization and non-cash items, based on an estimate calculated as if all investment and disposition activity that took place during the quarter had occurred on the first day of the quarter. We then annualize quarterly Adjusted NOI and Adjusted Cash NOI by multiplying each amount by four to compute Annualized Adjusted NOI and Annualized Adjusted Cash NOI, respectively, which are also non-GAAP financial measures. We believe Adjusted NOI and Adjusted Cash NOI provide useful and relevant information because they reflect only those income and expense items that are incurred at the property level and present such items on an unlevered basis. We believe that the exclusion of certain non-cash revenues and expenses from Adjusted Cash NOI is a useful supplemental measure for investors to consider because it will help them to better assess our operating performance without the distortions created by non-cash revenues or expenses. You should not unduly rely on Annualized Adjusted NOI and Annualized Adjusted Cash NOI as they are based on assumptions and estimates that may prove to be inaccurate. Our actual reported Adjusted NOI and Adjusted Cash NOI for future periods may be significantly different from our Annualized Adjusted NOI and Annualized Adjusted Cash NOI. Additionally, our computation of Adjusted NOI and Adjusted Cash NOI may differ from the methodology for calculating these metrics used by companies in our industry, and, therefore, may not be comparable to similarly titled measures reported by other companies.

Annualized Base Rent (ABR): We define ABR as the annualized contractual cash rent due for the last month of the reporting period, excluding the impacts of the short-term rent deferrals and abatements agreed to as a result of tenant requests for rent relief related to the COVID-19 pandemic, and adjusted to remove rent from properties sold during the month and to include a full month of contractual cash rent for properties acquired during the last month.

Cash Cap Rate: Cash Cap Rate represents the estimated first year cash yield to be generated on a real estate investment property, which was estimated at the time of investment based on the contractually specified cash base rent for the first full year after the date of the investment, divided by the purchase price for the property.

EBITDA, EBITDAre, Adjusted EBITDAre, and Annualized Adjusted EBITDAre: EBITDA, EBITDAre, Adjusted EBITDAre, and Annualized Adjusted EBITDAre are non-GAAP financial measures. We compute EBITDA as earnings before interest, income taxes and depreciation and amortization. EBITDA is a measure commonly used in our industry. We believe that this ratio provides investors and analysts with a measure of our performance that includes our operating results unaffected by the differences in capital structures, capital investment cycles and useful life of related assets compared to other companies in our industry. We compute EBITDAre in accordance with the definition adopted by Nareit. Nareit defines EBITDAre as EBITDA excluding gains (loss) from the sales of depreciable property and provisions for impairment on investment in real estate. We believe EBITDA and EBITDAre are useful to investors and analysts because they provide important supplemental information about our operating performance exclusive of certain non-cash and other costs. Adjusted EBITDAre represents EBITDAre, adjusted to reflect revenue producing acquisitions and dispositions for the quarter as if such acquisitions and dispositions had occurred as of the beginning of the quarter, and to exclude certain GAAP income and expense amounts that are either non-cash, such as cost of debt extinguishments or the change in fair value of our earnout liability, or that we believe are one time, or unusual in nature because they relate to unique circumstances or transactions that had not previously occurred and which we do not anticipate occurring in the future, and to eliminate the impact of lease termination fees, and other items that are not a result of normal operations. We then annualize quarterly Adjusted EBITDAre by multiplying it by four to compute Annualized Adjusted EBITDAre. Our reported EBITDA, EBITDAre, Adjusted EBITDAre, and Annualized Adjusted EBITDAre may not be comparable to similarly titled measures of other companies. You should not consider these measures as alternatives to net income or cash flows from operating activities determined in accordance with GAAP.

Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO): FFO and AFFO are non-GAAP measures. We believe the use of FFO and AFFO are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs. FFO and AFFO should not be considered alternatives to net income as a performance measure or to cash flows from operations, as reported on our statement of cash flows, or as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures. We compute FFO in accordance with the standards established by Nareit, which defines FFO as GAAP net income or loss adjusted to exclude net gains (losses) from sales of certain depreciated real estate assets, depreciation and amortization expense from real estate assets, gains and losses from change in control, and impairment charges related to certain previously depreciated real estate assets. To derive AFFO, we modify the Nareit computation of FFO to include other adjustments to GAAP net income related to certain non-cash and non-recurring revenues and expenses, including straight-line rents, write-off of accrued rental income, the change in fair value of our earnout liability, lease termination fees, cost of debt extinguishments, amortization of lease intangibles, amortization of debt issuance costs, amortization of net mortgage premiums, (gain) loss on interest rate swaps and other non-cash interest expense, realized gains or losses on foreign currency transactions, internalization expenses, stock based compensation, severance, extraordinary items, and other specified non-cash items. We believe excluding such items assists management and investors in distinguishing whether changes in our operations are due to growth or decline of operations at our properties or from other factors.

Definitions and Explanations (continued)

GAAP Cap Rate: GAAP Cap Rate represents the estimated first year GAAP yield to be generated on a real estate investment property, which was computed at the time of investment based on the first full year of rental income computed in accordance with GAAP, divided by the purchase price including capitalized acquisition costs for the property.

Gross Debt: We define Gross Debt as total debt plus debt issuance costs and original issuance discount.

Net Debt: Net Debt is a non-GAAP financial measure. We define Net Debt as our Gross Debt less cash and cash equivalents and restricted cash.

Occupancy: Occupancy or a specified percentage of our portfolio that is “occupied” means as of a specified date the quotient of (1) the total rentable square footage of our properties minus the square footage of our properties that are vacant and from which we are not receiving any rental payment, and (2) the total square footage of our properties.

Rent Coverage Ratio: Rent Coverage Ratio means the ratio of tenant-reported or, when available, management’s estimate, based on tenant-reported financial information, of annual earnings before interest, taxes, depreciation, amortization, and cash rent attributable to the leased property (or properties, in the case of a master lease) to the annualized base rental obligation as of a specified date.

Broadstone Net Lease (BNL) 8-KBroadstone Net Lease Announces Fourth Quarter and Full Year 2021 Results